NCLT approves Zaveri & Co's resolution plan for Gujarat Hydrocarbons
This story was originally published at 20:13 IST on 19 February 2025
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NEW DELHI – The Delhi bench of the National Company Law Tribunal on Wednesday approved Zaveri & Co. Pvt. Ltd.'s INR 1.35-billion resolution plan for debt-ridden Gujarat Hydrocarbons and Power SEZ Ltd. The tribunal also rejected an application by Gujarat Industrial Development Corp. contesting the resolution plan by Zaveri & Co.
This is the second time the tribunal has approved the resolution plan of Zaveri & Co. The tribunal had in 2023 approved the resolution plan but the National Company Law Appellate Tribunal had in 2024 set aside the approval based on an objection by Gujarat Industrial Development Corp. The appellate tribunal had remitted the case back to the Delhi tribunal.
In its order, the tribunal said the commercial wisdom of the committee of creditors has been given paramount status. The resolution plan submitted by Zaveri & Co. was approved by the committee of creditors in 2021 and the adjudicating authority cannot interfere with that, the tribunal said.
According to the resolution plan, Gujarat Hydrocarbons' secured financial creditor SREI Infrastructure Finance Ltd. would be paid an amount of INR 1.25 billion against its admitted claim of INR 18.85 billion. The resolution plan has proposed an ex gratia payment of INR 64.33 million for the operational creditors.
Zaveri & Co. has proposed to infuse interest-bearing unsecured loans and inter-corporate deposits with flexible repayment schedules up to an amount of INR 1.15 billion. Further, Zaveri & Co. would infuse INR 1.10 billion in the debt-ridden company towards capex for infrastructure development.
The tribunal had in 2020 admitted a petition by SREI Infrastructure Finance to start insolvency proceedings against Gujarat Hydrocarbons and Power SEZ.
Gujarat Industrial Development Corp., which leased land to Gujarat Hydrocarbons and Power SEZ, had filed claims of INR 1.80 billion against the debt-ridden company. However, it was only offered INR 61.45 million in the resolution plan.
Dismissing the application by Gujarat Industrial Development Corp, the tribunal said the application was filed with the intent of disrupting and derailing the corporate insolvency resolution process of Gujarat Hydrocarbons and Power SEZ.
Reported by Surya Tripathi
Edited by Saji George Titus
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